Government, industry and academia must work together if the UK is to develop the skills required for a thriving knowledge economy, says an influential report released last week.

In the face of global competition, knowledge-intensive industries such as IT make a disproportionate contribution to growth.

But for the UK to meet Europe’s i2010 competitiveness goals, fundamental changes are required to the education of the workforce, says the report from industry group the Information Age Partnership (IAP).

So far progress has been scant. The UK only just clung onto its 20th-place ranking in the world league for economic competitiveness, according to Institute for Management Development figures published last week.

Key recommendations from the IAP include:

* government development of a co-ordinated national strategy for subjects of national importance.

* fuller engagement of industry with higher education

* creation of a true IT profession with rigorous certification at key levels.

It is vital to create relevant qualifications and inspire people to take them, says IAP member Gordon Frazer, managing director of Microsoft UK.

‘Sadly we see people leaving schools and universities without the necessary skills. We need to act now to maintain competitiveness or we will fail,’ he said.

The UK is historically strong in high-level research, but there are fewer students coming up through the ranks.

‘We have a reputation for IT excellence because of our infrastructure, management skills and well-educated workforce, but we cannot be complacent,’ said Margaret Hodge, minister for industry and the regions.

Ministers will consider the IAP recommendations in June.